Sportech targets emerging markets
Following $51.4m acquisition of Scientific Games Racing, Sportech outlines future plans.
Sportech will focus on emerging regulated markets, cash generation and debt reduction following a successful five-month period that saw it acquire one of the world’s largest pari-mutuel firms for more than £50m, the British operator said following an interim statement this morning.
“Sportech has made significant progress in this period,” Ian Penrose, chief executive of Sportech said. “We have continued to extend the distribution of our core products, and the completion of our acquisition of SGR following an extensive regulatory process, gives the group the platform for further developing our potential in the emerging global regulated markets.”
The Liverpool-based firm acquired Scientific Games Racing (SGR), now renamed Sportech Racing, on 5 October for £51.4m, following a protracted regulatory process that saw the deal eventually approved in the US and in the Netherlands where the company owns pools and tote wagering brand Runnerz.
In a statement to the AIM stock exchange, the company said is integration of SGR was “proceeding well and to plan”. “During the first six weeks of ownership, the senior management team from the enlarged group has been highly engaged, and has displayed positive energy and drive to build upon the business opportunities facing Sportech.”
It added that it is continuing to work with software provider and 10% shareholder Playtech as it looks to “realise the significant potential of Sportech’s egaming operations in 2011″.
During the period between 1 July and today the company also relaunched the Football Pools on Ladbrokes.com and signed an agreement with pari-mutuel gaming company Sol Mutuel, to distribute the Football Pools across the Caribbean and South America from the second quarter of next year. It also opened two additional off track betting locations as part of its venue management business in Connecticut taking the total number of outlets up to 14; extended its licensing agreement with Shop Direct Group for the continued use of the Littlewoods brand for online gaming; and said that it “continues to make progress” with Indian brand Sportshero.com, which has gained more than 100,000 registered customers to date since its launch six months ago. “The group is continuing to monitor regulatory developments in India, and particularly in the state of Sikkim,” the statement added.